10. 0.74
2.7
2.85
0
0.5
1
1.5
2
2.5
3
8 oz cup 32 oz cup 4 oz multipack
Price
Category
Price Vs Category
Retail price
5%
33%
23%
15%
Market sare
Colombo Dannon other Private label Yoplait
11. Natural stores Channel
Manufacturer
Natural foods
wholesaler
Natural foods
distributor
Retailer Consumer
Friendly to small manufacturers
5 steps process
Price are higher
12. 35%
24%
19%
7%
15%
Market sare
Other Nature view Farm Horizon Wave White Wave Brown Cow
0.88
3.19
3.35
0
0.5
1
1.5
2
2.5
3
3.5
4
8 oz cup 32 oz cup 4 oz multipack
Price
Category
Price Vs Category
Retail price
13. Situation Analyse
STRENGTH
High shelf life
Quality , taste and natural
Strong relation with natural store
OPPORTUNITIES
Growth
Increase interest in organic foods
WEAKNESS
Small manufacture
Low funds and revenue
THREATS
Competition
Increasing demand of logistics
Increase in price sensitive customers
SWOT
14. Financial Analyse
Revenues $13,000,000 100%
Cost of goods sold $8,190,000 63%
Gross Prot $4,810,000 37%
Expenses
Administration/Freight $2,210,000 17%
Sales $1,560,000 12%
Marketing $390,000 3%
Research and Development $390,000 3%
Net Income $260,000 2%
15. OPTIONS
1. Expand 6 SKUs of the 8-oz. product line into one or two
selected supermarket channel regions.
2. Expand 4 SKUs of the 32-oz. size nationally.
3. Introduce two SKUs of a children’s multi-pack into the natural
foods channel
16. Option 1 :- Expand 6 SKU of 8 oz product line
• Great upside potential
• Attract higher income less price sensitive
customers
• 20% growth at super marketsBenefits
• Require quarterly trade promotions and
meaningful marketing budget
• $1.2 million advertising cost per region per year
• Direct competition with national yogurt brandsRisks
17. Option 2 :- Expand 4 SKU of 32 oz
• Give higher gross profit margin than 8
oz
• Strong shelf life and lower marketing
advantage
Benefits
• Establish relationships with
supermarket brokers
• Increase SG$A expanse by $160,000Risks
18. Option 3 :- Introduce 2 SKU of children
multipacks
• Give higher gross profit margin than 8
oz
• Strong shelf life and lower marketing
advantage
Benefits
• Establish relationships with
supermarket brokers
• Increase SG$A expanse by $160,000Risks
19. Options Actions Total incremental sales
Option 1 Expand 6 SKUs of the 8-oz. size into eastern and western
supermarket regions
35,000,000
Option 2 Expand 4 SKUs of the 32-oz. size nationally into
supermarket channel
5,500,000
Option 3 Introduce 2 children’s multipacks into natural foods
channel
1,800,000
20. Decisions Parameters Option 1 Option 2 Option 3
Revenue Objective Exceeds Exceeds
Short Term Profits No No Gain
Long Term Profits High High Low
Channel Partners Highly Alienating Alienating Enhancing
Competitive
Response
Very Risky Risky Low
Cost to Induce Trial High Very High Low
Brand Equity Dilution Possible Possible No
Organisational
Capabilities
Low Low High
“Go with Option 3 and expand Multipack into natural foods channel”